Nissan profit hit by strong yen, higher materials, R&D costs

Yuri Kageyama, Ap Business Writer

May 14, 2018Updated: May 14, 2018 6:18am

Photo: Koji Sasahara, AP

In this Nov. 10, 2017, photo, visitors walk around a gallery of the Nissan Motor Co. at its global headquarters in Yokohama, near Tokyo. Japanese automaker Nissan said Monday, May 14, 2018 its profit fell 32 percent in the last quarter from a year earlier as a strong yen, rising raw materials costs and research expenses bit into earnings.

In this Nov. 10, 2017, photo, visitors walk around a gallery of the...

TOKYO (AP) — Nissan Motor Co.'s profit fell 32 percent in the last quarter from a year earlier as a strong yen, rising raw materials costs and research expenses bit into earnings, the Japanese automaker reported Monday.

Nissan, allied with Renault SA of France, is expecting global vehicle sales to grow this fiscal year to 5.925 million vehicles.

Its global vehicle sales for the fiscal year through March reached a record 5.77 million vehicles, up 2.6 percent on- year.

By region, vehicles sales rose in Japan, despite the inspections scandal and production halts. Sales also grew in North America, where the Rogue sport-utility vehicle was popular, Nissan Chief Executive Hiroto Saikawa told reporters.

Saikawa said Nissan's alliance with Renault, set up in 1999, when Nissan was on the verge of bankruptcy, as well as the more recent one forged with Japanese automaker Mitsubishi Motors Corp. were going well.

Nissan has been aggressive in pursuing electric vehicles, with its Leaf being the world's best-selling pure electric vehicle. Nissan is also aggressive in pursuing new mobility services such as car-sharing and autonomous drive.

Although all the world's automakers are pursing such technology, there are clear differences in how quickly, and how passionately, each company has invested in its development.

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